Porsche issuing 911 million shares in IPO to salute its iconic model
Volkswagen set to spin off Porsche in IPO
Volkswagen is planning to spin off the sports car brand with an IPO expected to be valued in the $70 billion to $75 billion range.
The valuation would make it worth roughly twice that of Ferrari, which was turned into an independent company by Fiat in 2015.
Volkswagen Chief Executive Oliver Blume is set to run the new company, officially called Dr. Ing. h.c. F. Porsche AG.
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Volkswagen will offer preferred shares to the public in Germany, Austria, France, Italy, Spain and Switzerland.
"Porsche is aiming to unleash its full potential by leveraging its many strengths, including: i) its iconic brand and racing heritage, ii) structural growth environment, iii) superior customer experience, iv) innovative battery electric vehicle ("BEV") technologies, v) commitment to sustainable luxury, vi) people-centric performance culture as well as vii) compelling financial performance," an announcement on the IPO said.
Trading is expected to begin on Sept. 29, split between non-voting preferred and ordinary shares, with voting rights that total up to a significant number for the automaker.
The Wall Street Journal reports that 911 million shares will be issued in tribute to Porsche's most iconic model, the 911 sports car.
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The 911 line has been in production since 1964, but is Porsche's third best-selling model globally today, behind the Cayenne and Macan SUVs.
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Porsche built its one-millionth 911 in 2017 and delivered 26,616 worldwide through the first six months of 2022, putting it just ahead of the four-door electric Taycan's 18,877 sales.